JXT.AX WACC - Weighted Average Cost of Capital
The WACC of Jaxsta Ltd (JXT.AX) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.9% - 9.9% | 8.9% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.5% - 9.4% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 4.1% | 4.6% |
| Equity market risk premium | 5.5% | 6.5% |
| Adjusted beta | 0.69 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 9.9% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.5% | 9.4% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JXT.AX | Jaxsta Ltd | 0.08 | 0.51 | 0.48 |
| CAG.AX | Cape Range Ltd | 0 | -0.52 | -0.52 |
| HSC.AX | HSC Technology Group Ltd | 0.22 | 0.57 | 0.49 |
| ICE.AX | Icetana Ltd | 0 | -0.58 | -0.58 |
| ID8.AX | identitii Ltd | 0.19 | 3.87 | 3.41 |
| KNO.AX | Knosys Ltd | 0.03 | -0.68 | -0.67 |
| OPL.AX | Opyl Ltd | 0.07 | 1.92 | 1.83 |
| PTG.AX | Proptech Group Ltd | 0.01 | 1.46 | 1.45 |
| WOO.AX | Wooboard Technologies Ltd | 0.95 | 1.75 | 1.05 |
| XPE.AX | XPED Ltd | 0.03 | 0.07 | 0.07 |
| Low | High | |
| Unlevered beta | 0.32 | 0.72 |
| Relevered beta | 0.54 | 0.61 |
| Adjusted relevered beta | 0.69 | 0.74 |
JXT.AX's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for JXT.AX:
cost_of_equity (8.90%) = risk_free_rate (4.35%) + equity_risk_premium (6.00%) * adjusted_beta (0.69) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.